2% Interest Rates, Building a $15M Portfolio & Future of Real Estate | Tommy Harr DSH #317

So when I started getting to investing, I did these $75 inspections for investors to get my foot in the door to network with the right people and get in the door.

I'm like, okay, let's do it.

I started walking through.

I mean, it's like standing like three, four inches of human, human

because it backed up from one of the drains.

There's got to be better ways to make good money, right?

Yeah.

So you had to walk and walk through s.

Yeah.

That's not the only time I've done that, but yeah.

You got to hustle.

You got to make that happen.

I guess that's part of my like ascension into, you know, getting it, getting it in.

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And here's the episode.

All right, we are here with Tommy Harr, real estate expert.

How's it going, man?

What's up, man?

Thanks for having me.

It's freezing cold in Vegas.

Come from Ohio.

Thought it was going to be a

warm vacation, but it's not the case.

I woke up this morning and I ground every morning and my feet were freezing i didn't last three minutes no way i mean dude the grass was frozen here i was like what the hell am i like i thought the desert was supposed to be warm but yeah i thought it was cold in ohio though freezing cold so you get colder and colder it's right about the time where you just kind of suck it up for the next four months or so and yeah just stay with it that was me in jersey honestly the winters were pretty rough there yeah the brutal makes the people i guess a little bit grittier and cooler i guess i don't know yeah so um real estate man so talk to me how you got into that yeah so uh been kind of around real estate my whole life.

My dad's a home inspector.

So growing up, he also had a property preservation business.

So 08-09 happened.

I was probably 14.

He started a business where he, where the banks were foreclosing everything, somebody had to trash the houses out, board them up, mow the lawns.

And I kind of just grew up in that business.

So graduated from college in 2017.

You made it.

Not a lot of my guests graduated.

No, I listened to that and I was like, damn, I guess I'm the odd man out, but didn't really use my degree, but just joined my dad's home inspection business and didn't know anything about it okay i just followed him around and learned like a puppy dog basically he pointed at things and i just learned that way yeah and then as time went on started to see real estate investors uh how much money they were making the lifestyle they were living and i was like man that sounds really cool let's uh let's try to dip my toes in this and see what it can do and uh five six years later now it's completely changed my life wow so how much did you start with in the real estate market zero zero no i mean i was living in my parents basement i graduated graduated in college and just really kind of tried to make it happen.

My dad was paying me like $32,000 a year back in 2017.

Damn, your dad was.

Yeah, I mean, it's just, he was a one-man show.

He had built the property preservation business up to like 80 employees.

It got to a point where banks didn't want to pay anymore.

And then also the,

I mean, you got to kind of let people learn too.

So that business went to nothing.

Oh, wow.

And he was just doing home inspections and you got to learn.

So he was just paying me enough to

make it feel okay, I guess.

Damn.

What's the worst home inspection you've ever seen?

Oh, God.

There's, I mean, I've walked through human

in a basement.

Like, you know, right away.

Oh, yeah.

So, like, I used to do these inspections.

So, when I started getting to investing, I did these $75 inspections for investors to get my foot in the door, to network with the right people and get in the door.

And right away, I went to the seller.

Ohio has 100-year-old plus houses.

I went to the basement.

Immediately, you could smell just.

So I'm just like, oh, my God.

And I'm already done with everything else.

So I'm like, I really got to do this, huh?

I'm like, okay, let's do it.

I started walking through.

I mean, it's like standing like three, four inches of human, human.

What?

Yeah.

On the floor?

On the floor because it backed up from one of the drains.

And these people, it's a seller, so they don't go in their basement often.

Wow.

So I just went down there and I was just like, and I walked out.

And this was among a couple other things.

I was like,

this is not worth it.

This money is not,

there's got to be better ways to make good money, right?

Yeah.

So you had to walk and walked through shit.

Yeah.

That's not the the only time I've done that.

But yeah.

I mean, it's just like, you got to hustle.

You got to make it happen.

I, I guess that's part of my like ascension into, you know, getting it, getting it in.

But that's cool.

You had the forward thinking to be like, okay, let me leverage these investors and find out a way to make money with them in the future.

That completely changed my life.

Yeah.

So I knew I wanted to invest.

I was starting to dip my feet into the wholesaling scene.

And everybody always says, bring value to somebody, whatever the hell that means.

So that was my way to bring value.

So I was at somebody's networking event.

There was a, I knew they took really bad pictures and they, they didn't know how to market their properties and they didn't know anything about houses.

So I was like, hey, I can give you 150 pictures of a house.

I can give you a one-page report.

I'll do it for $75.

I assume you're giving somebody 50.

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A little bit more than that, and that kind of took off like wildfire.

And everybody started to know my name and started seeing all the deals before they hit the market as well.

Interesting.

So you would just take better quality photos?

And it was that simple?

Yeah, better quality photos and give people like the best thing about

the perfect wholesale deal.

So getting it from the seller, selling it to another person, you're that person in the middle, is that end buyer never even having to walk the house.

So if you can give a good enough picture base and a report, a lot of people can buy sight unseen.

People are buying without going to the house.

Oh, yeah.

We buy a lot of houses now sight unseen.

Dude, I'm house shopping right now and I feel like I would never do that, honestly.

Yeah, it's a mixture of knowing like the ages of houses, different areas, different eras have different things that go wrong with them yeah and then being able to basically run your numbers based off of pictures wow yeah yeah but that's probably the lower range right like pretty much okay so i mean i'm sure you're shopping for most people are flipping them so they don't really care to live in them yeah they're they're they're assuming worst case scenario most things so you're kind of just giving it to them and they're running full rehab numbers on them anyway yeah okay so you started doing wholesale and then from there what did you do yeah so i started so the inspection happened and then my uncle called me like a day before i graduated college and was like hey do you want to invest in real estate estate?

I didn't know anything about it.

I didn't really know anything about anything.

And he wanted me to do it in Chicago.

So six months later, we're doing a lot of inspections for investors, like I said.

And I call him back and like, hey, would you want to do this in Columbus, Ohio, where I'm from?

Yeah.

And he was like, sure, let's find a deal and let's do it.

So long story short on this, we partnered up over the next 18 months.

We lost 100 grand on our first flip.

Damn.

Yeah.

So we lost,

man.

It's funny talking about it now, but it wasn't funny back then.

I lived in it with, I played soccer in college, a buddy of mine from the Netherlands.

He lived with me room to room.

We didn't have hot water.

It was just,

I had Instagram, I had my bio saying investor now.

So I was like, this is awesome.

I'm cool.

So should have fired my contractor, overshot what the house was going to be worth.

Took too long.

The holding cost saved us alive.

The price, we sold it for like $100,000 less.

It was just amazing.

Wait, why didn't you have hot water?

Just never thought about getting it on.

So how'd you shower?

We went to the basement and this, I mean, this is how stupid we were.

There was a shower in the basement and we we turned the head like sideways and we kind of just like go in the corner and wipe off as fast as we could.

Yeah, I mean like 23, 24 years old.

Wow.

It's only like 100 a month, isn't it?

Yeah.

Yeah.

It could have also been a thing like maybe the water heater was broken or something.

Oh, okay.

So I mean it was a full rehab and we spent like 200 grand fixing up this house.

Damn.

And that was your first one you wanted to do?

Yeah.

I feel like for the fix and flips, you need a mentor or like some good experience.

That's what I tell people now is like you need somebody to look over your shoulder, whether that's you partnering on a deal or you paying for a mentorship, whatever it is, because

a lot of people don't talk about it.

There's a lot of risk in that, especially if you're borrowing people's money to do the business.

Especially right now in the market, prices are dropping and your money costs still accrue every day.

So if the market's dropping, people are losing money.

I've lost money on a few flips that I've done lately.

Damn.

Yeah, I saw Pineda.

He said he lost a ton on flips lately.

Yeah, it's just part of the business.

And nobody really outwardly talks about that stuff.

And I think it needs to be talked about a little more.

Definitely, because social media only shows you the highlights.

They're not showing the lowlights.

Absolutely.

Yeah.

So after that 100k loss, it must have taken you a while to rebound, right?

Yeah.

So 100K loss.

Moved back into my parents' basement.

I'm probably 24 at the time.

Still fell in love with the idea of wholesaling.

So I'm still inspecting full-time.

So going out, driving around a beater truck, 2002 Honda Ranger with my dad every day.

Learning small business as well.

So it was just me and him.

So I learned about marketing sales, like how to knock on somebody's door and really kind of sell.

So wholesaling kind of fit right in there and you can make money out of nothing.

So fell in love with that, spent my last $800 on postcards.

So basically we buy, we buy houses, cash, send them out to people on the bank.

Yeah, those work?

They do.

They do.

It's a mass marketing tactic, but absolutely it works.

Yeah, you only need one house.

You only need to make it back.

So I got three calls on that.

One of them was my next flip where I tried to wholesale it.

Nobody wanted to buy it.

And then

one of my old neighbors, I called her and she said she would fund it.

We split it 50-50.

We made 50 grand.

I took 25.

She took 25.

And then I I yeah, and then I went and bought a duplex, lived in one unit, rented all my bedrooms out, lived in my living room, and then rented the other side out, and I was cash flowing in my first rental property.

House hacking.

Yeah, Spencer Cornelia talks about that.

Yep.

What was that like living with like six dudes and one little.

I mean, it was, it was cool.

I mean, I was still young.

I didn't have a girlfriend or a wife now.

I had my dog.

So really, it was just like, hey, this is going to be only for a set amount of time.

This is a necessary thing to do.

I don't have much money.

Like, let's bunker down and let's get it in.

Did you always have the confidence that it would work out?

Yeah.

Wow.

Yeah.

Where did that come from, you think?

I come from an athletic background.

So I was a pretty decent athlete, but I was always injured.

So it always kind of had that back and forth of like, I know I'm good enough, but these injuries set me back.

So I always had that same mindset with like, I've always done what I said I was going to do.

Yeah.

It just always takes way longer than what you think it's going to take, right?

Facts.

Always.

Facts.

So it just was one of those things of just believing in yourself and going for it.

Dude, I'll say sports really creates a good mindset.

Absolutely.

Like, it really helped me in business and in life, honestly.

I'm so happy I did sports growing up.

Dude, I mean, just having a coach tell you you're not good enough or like getting injured or getting benched, that's the same thing in business.

You think you're going to go out and crush it, and turns out you get kicked in the

d sometimes.

Yeah, you get humbled because you get humbled really fast.

Results are right there in front of you.

Absolutely.

And you'll see if you're about to talk or not with sports.

What was your sport?

I played soccer.

Okay.

Yeah.

So I played soccer uh outside mid nice at university of daytime damn so you went d1 yeah i went d1 so you wanted to go pro uh kind of i mean a couple of my i mean my one roommate he plays for the colorado rapids right now he was nice fifth round first round draft pick damn fifth pick yeah his name was nice so i mean we were good i just was always injured man so the dream kind of went away pretty fast um and i just knew i liked money so i was like okay i'm gonna go home and i'm just gonna work for my dad and figure it out from there yeah is your dad still working yeah he is so yeah he uh he he had so kind of a come to jesus moment he had like 10 strokes.

Holy like three years.

It's actually five years ago now.

I was in Nashville at a bachelor party.

And this was one of the things that kind of changed my whole perspective on like working for money.

I just heard you talking about it earlier.

Yeah.

I've always watched him since he was, when I was young, get up, work his off, but always be there for the family.

Five kids.

So always be there at the games, coach the games, all that stuff.

And then I got a call from my mom saying, you got to come home right now.

Your dad just had a bunch of strokes and we don't know how it's going to go.

So there's an MRI that shows his brain and there's like a whole bunch of white dots and they look they said hey, this is like landmines.

If you ever played the game on the computer, like the old game?

Oh, yeah.

If you hit the wrong one, it's like

yeah, I know what you're talking about.

Yeah, so they were like, if this was anywhere else, your dad would be like literally dead.

So I was like, holy there's more to life than going and punching a clock and like working for money every single day.

So I want to retire my parents and real estate investing is kind of that vehicle I'm choosing to do.

Wow.

That's awesome.

And you built up a sizable portfolio now, $15 million, right?

Yep.

Yep, just about.

And how long?

It's been about five years.

So a lot of that has been like the last two and a half, three years.

I started out with the house hacking and kind of building one at a time.

And then as confidence grew, started making some money wholesaling and flipping, kind of started shoving that all into real estate.

Yeah, it really seems like it's taken off.

I mean, that's a quick five years, $15 million portfolio.

It is.

It was lucky because we were wholesaling a lot of deals.

So wholesaling is you see the deals first.

So instead of selling them to another investor, at that time, we, when I say we, I have a business partner now.

We were like, hey, let's just, let's buy some of these as rental properties.

And it was 2020, 2021.

Interest rates were in the twos and threes.

It was the perfect time to hold all these rental properties.

So most of our portfolio is in like the four-ish percent interest rate range.

Wow.

Which is great.

That's really good.

Because right now they're seven, eight.

Yeah.

Have you bought any at that range?

Yeah.

Oh, you have?

Yeah, that's not great.

It's kind of, it's kind of a necessary evil.

So once you send in like to making more money flipping, you're going to pay a lot of tax.

Right.

So either give it to the IRS or you buy some rental properties right off cost segregation studies, all that good stuff.

Yeah.

And as long as you have equity, you can refinance in the future.

So it's a short-term thing, but the long-term goal is still there with them.

Yeah, I was seeing Ben Malaw talk about this on Ice Coffee Hour.

He said he never taking profits off of real estate flip.

He just keeps reinvesting it.

That's crazy.

And I'm like, what the hell?

Like, how are you making money?

You know what I mean?

Yeah, I mean, you got to have active streams somewhere.

So you got to have, like a lot of people have education companies or podcasts or something where they're making a lot of their active income taking it and shooting it into real estate where they can get massive tax write-offs and the appreciation long term.

Yeah.

So how are you feeling about the market right now?

Do you see it coming back eventually?

I like to control what I can control.

So I don't think it's going to change too much for the for the time being, maybe like another year.

But in Columbus, Ohio, where I'm from, you can still buy houses and they'll cash flow a little bit.

But if you're in Vegas or maybe Phoenix, it might be a lot harder.

So you got to get creative.

But we're just running our numbers tighter.

We're flipping them if we need to and not falling in love with deals that we would have kept a year or two ago because things are always changing and they're not making more real estate.

Yeah, that makes sense.

And are you taking loans out against the equities on the houses?

Yeah.

So we'll typically take them to a small bank or a DSCR lender and get a 75% LTV loan.

So if it's worth 100, we'll refinance 75,000, keep 25% or 25,000 equity in the deal.

Right.

And hopefully we cash flow.

And that's interest-free, right?

That's why people do that?

Yeah.

So no, they're not interested free.

No, they're not.

So those are just regular bank loans.

So you can just go buy your house now.

It's kind of the same product.

It's more interest.

A lot of people are doing interest-only loans right now to kind of offset and make them cash flow a little bit.

Yeah.

Are you going to stick in Ohio or you want to expand?

I would say eventually expand.

I'm very micro with my thinking, especially with real estate.

I want to dominate my backyard.

Columbus has been a top five market in the last five years.

Really?

Every year, pretty much.

Oh, wow.

How did they measure that?

Just volume and then the amount of jobs coming in.

So, I mean, the buzzword, I hate that I'm even saying it.

Like, Intel is doing a $3 billion plant, chip plant in Columbus.

Google's doing one, Facebook.

Like, there's a lot of big must be good tax benefits, sir.

Tax benefits, and it's affordable.

So

they say that the average salary for that Intel plant is $100,000.

And for Columbus, Ohio, that's a great living.

Because you could buy a house, a very nice house is $400,000, $500,000.

Damn.

Not out here.

No.

No, you're not getting out here for that.

Especially LA.

You're not even getting an apartment for that.

No.

So, I mean, we get a lot of those people that come from those markets and want to invest in Columbus for those same reasons.

Yeah.

Wow.

I didn't know that about Columbus.

I got to check it out, man.

What are the networking opportunities like?

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Got there?

They're a little less than what we were talking about before, like here.

Yeah.

You got to kind of create your own destiny.

So I have a mentor.

You've probably heard him, Austin Rutherford.

I think so, yeah.

He started a small group of guys before he left town.

We all get together and do some masterminding.

And then I host my own networking events just to kind of get people together and make sure that we're continuously doing that.

Because it's not just every day, like in Vegas.

You got to kind of create your own destiny or go out to other places to where you can get around that and keep your, I mean, just keep the eye on the ball.

That makes sense.

That's how I felt in Jersey when I lived there.

You kind of had to do your own thing or go to New York City, have an event.

Are there any nearby major cities?

You know, not really.

Most of the people that I know that are like crushing it are in like Phoenix.

Phoenix.

Or Florida or like North Carolina.

Yeah.

And I think as the market changed, there used to be them all the time, vacation masterminds, all these things.

And now they kind of slow down.

I think people are hurting a little more.

Yeah.

So that also brings major opportunity to...

to bring something to the market as well.

Yeah.

So you must be one of the top guys in Columbus.

Yeah, I would say so.

We've definitely made a good name for ourselves.

It's been happening pretty fast, but something that I always knew I was going to do.

Yeah.

What's your sort of long-term exit goal strategy?

Yeah.

So we want to continue to, so we have a bunch of companies within once.

We have our wholesaling company, flipping.

We manage our own rental properties.

We have an Airbnb company.

And then we also,

there's one more I'm missing.

We have an education company.

Got it.

So we have a community that we started.

So I really want to grow the community side.

That's nationwide.

But I also want to build a massive rental portfolio.

So hundreds, 500 500-plus units, just to really kind of change my entire family tree.

Yeah.

Grew up worrying about money.

I know you've talked about that before.

Your parents work

off.

So kind of being that one person in your family, just to kind of flip the switch and say, hey, there's more than getting up every single day and working your ass off and doing it again day after day.

I love that.

And you see guys like Grant and Kiyosaki saying we're becoming a renter's nation.

Absolutely.

So that makes you want to go all in on the rentals.

Absolutely.

Those guys know what they're doing, man.

Yeah.

I mean, real estate's one of the coolest businesses because it's not recreating the wheel.

Yeah.

It's not some crazy scientific thing.

People have done this for hundreds of years.

Yeah.

Just follow what people do.

Don't be a jack and try to do more than what you can do at the time and

stay steady.

That's what I mean.

Yeah.

People think you got to be a genius to make money, but if you're good at one thing, like I've seen people make money off the dumbest shit.

It's crazy.

I mean, I always say that some of my dumbest friends are the best real estate investors I know and entrepreneurs because they take an idea and they don't overthink it.

They don't overanalyze and they just like literally just go for it.

And I'm just like, man, he really did that.

And it worked.

I used to get really jealous of dumb people actually because you never see them upset.

No.

They're always happy.

No.

They just don't.

They don't know any better.

Yeah.

No, it's crazy, bro.

I've never seen them depressed, never seen them have anxiety.

It's fantastic.

It's like the trade-off, I guess.

For sure.

But there is a balance because you don't want to be too smart either.

No.

Those people go crazy.

Yeah.

I mean, I like to kind of sit in the, I don't like to overanalyze.

I don't know if you're the same way, but I try to, I mean, they say speed implementation.

Like if you learn something, you got to implement.

Yeah.

And then fail as quick as you can doing that so you can learn and adapt or pay somebody for their time.

Yeah.

So you can cut the line on whatever you're trying to do.

Absolutely.

No, I'm definitely about learning.

And every industry I do, because I've been in like six industries now, I'm not like you where you just stick to real estate, but I become top 1% within a year every time.

Doesn't even matter what it is.

That's crazy.

I'm in a basketball league.

I'm top 1%.

I do, I had a marketing agency, sold out for millions.

When I was in crypto, did amazing.

When I was in NFTs, did awesome.

I even sold mass during the pandemic, $15 million sales.

So I immediately become the top because I'm learning so much faster than everyone.

So what do you attribute that to?

Just mostly speed implementation and being able to spot a

Yeah, I'd say both.

Definitely speed, definitely learning, surrounding myself with the right people, mentorship, and I'm not afraid to fail.

That's awesome.

Because I just mentioned six wins.

There was also six losses.

Sure.

But at the end of the day, it's not like I'm lucky.

Yeah.

I'm actually putting in the work.

That's cool, man.

I mean, that's definitely inspiring.

I mean, what did you say?

You're 26?

Yeah.

That's insane.

Yeah.

That's absolutely insane.

I'm 29 and people look at me like, I'm crushing.

I'm like, dude, I got so much more.

There's levels, there's perspectives.

I mean, I see 18-year-olds making millions.

I'm like, what the hell?

It's insane.

Yeah.

I always say, I mean, these 18-year-olds that are wholesaling like crazy.

I was like, dude, I all wanted to kick a soccer ball and try to.

figure out where my next meal was back in the day.

Yeah, for real.

That's attributed to a lot of the social media stuff, you putting on a platform that they can hear different types of people and and implement and crush it by the time they're 21 do you ever think about going back in time oh

um not really actually really no wow i actually don't um yeah i mean i would change a few things but i think uh everything obviously happens for a reason yeah so i mean i believe that too but i i think about it because garyvee always talks about it he said he would go back to 18 if he could retain the same knowledge but he would lose all his money okay i think i would do it yeah i mean if i knew what i knew now i didn't really understand real estate, like, let's call it wholesaling until I was 23.

I mean, if I knew that five years earlier, then, I mean, I'd be way ahead.

Exactly.

But I also feel like I've met a lot of good people along those lines.

I wouldn't have met those people now, and they've changed my life.

So I like to, because relationships to me are very, very important.

Yeah.

And that's huge.

Have you burned any bridges?

A few.

Not many, though, honestly.

I mean,

I try to stay very middle of the world.

I used to be like just growing up a hothead.

Okay.

And I would just freak out like that.

As a soccer soccer player i could see that yeah because on the field you're yeah and i would just and and then just

try to continue that's a big thing in business too is being able to control your emotions on a day-to-day basis yeah let everybody see you level-headed i mean if you got to go home and scream a little bit do it but you got to be you got to have your level emotions yeah i try not to even if someone like screws me over i try not to let it like linger i mean you could take it to social media you could bash them but like how does that look on you at the end of the day it's a bad look and i know this because i used to do it and the last time i did it was like five years ago, and it was just such a bad look.

It's not a good look.

It was over a thousand bucks.

Yeah.

And I'm like, what?

What the f ⁇ ?

Why would I post me getting scammed over a thousand?

That makes me look like I'm broke.

Yeah.

And especially as you get older, you kind of just learn that, I mean, the petty stuff isn't worth it.

You just look like a j to other people, too.

Yeah.

And you're going all in on the social media branding, right?

Yeah.

Yeah.

What made you want to do that?

Mentor of mine, he was like, dude, you're doing cool stuff.

And I mean, a lot of these influencers are not, I mean, they're not doing what they say they do.

Yeah.

And I mean, we're doing a decent amount of business.

And just every time I'd post on an inspection of like a house, like walking through poop, let's call it,

people would just like flooded my, my, my DMs.

And it's like, oh, there's something here.

People like this stuff.

Yeah.

And that's kind of like where I came to my brand, The Real Side of Real Estate.

It's like, there's not a people sharing the losses.

There's people talking about flipping houses, but not talking about the house.

Like, what's up with that?

There's got to be something.

Yeah.

You're real, you're raw, you're authentic.

I feel like with some coaches, if they haven't walked the walk, I can't respect it, dude.

At all.

Like, if you're not doing sizable volume, like I'd say at least millions, you shouldn't be coaching.

I agree.

I mean, it's just so easy to do, right?

I mean, you do something and you take a bunch of videos and you try to sell a course.

I battled with the fact of like starting an education brand, dude, so deeply because to me, they get such a bad rep because of that exact reason.

It's terrible rep.

It's horrible.

If you launch a course, it's like a bad look.

It's terrible.

So you got to know that, I mean, you got to be good with yourself on the inside to then put it outward.

So that was a big mental block of mine for a long time.

Dude, it still is with me.

Like I could have launched a course and made good money, but I'm still battling it.

Even with social media and a podcast, like, did you have that mental block of like who I and the imposter syndrome, stuff like that?

For sure.

I think every entrepreneur goes through it, right?

Yeah.

Finding themselves a little bit.

But yeah, with the course stuff, it's like such a bad look.

But there are a few good people doing it.

Yeah.

Yeah.

I mean, there's a lot of people doing it, but there's so many bad that are getting about it.

So many.

And that's what people focus on, too.

So then they associate the whole industry with it.

Exactly.

Yeah.

So it's an uphill battle for you.

Yeah.

Yeah.

But it's,

I'm used to it.

Yeah.

Get it done.

What's your thing?

Is it a course?

Is it a program?

It's a community.

So it's, you get two courses, so fix and flip and then also wholesaling.

So it's not just like a hey, here's how you raise money and then you buy a deal and then you sell it.

It's like 150 modules of actually being in houses, learning construction, all that stuff.

And then you have a you've used Slack.

Yeah, so it's a Slack channel of like 30 different Discord channels of real-time knowledge and help 24 hours a day with different experts from people that I know, people within my business.

So, if you have a general contracting question, I'm not answering all those questions.

I have a GC that's done 2,000 flips sitting in there and answer the question.

That's impressive.

Yeah, and giving people

the community they need, so connecting others where they need to be connected and pushing them in the right direction.

Yeah, that's cool.

Have you ever raised capital for a flip or anything?

Oh, yeah.

What's the process with that?

So, I mean, we raise private, they call it private money in the real estate space.

So, basically, if someone like you, if you had a million dollars in a savings account or a self-directed IRA, we would write up a note in a mortgage.

You would wire it to me or the title company.

We would record the note in the mortgage at the title office or at the county office and we would fix the house up, sell it, and you would make interest on your money.

So that's kind of one of my favorite things to do is raise capital.

It's kind of my thing in my business

right now.

So when you send the money, who's the title under whose name is it?

So it gets titled under our name.

So our business owns the asset, but that lender acts as the bank.

They're a lean owner.

Got it.

So seller financing.

No, so if you were to go buy your house today, whoever you get your loan through, let's call it Chase Bank, they have first right of refusal on that house.

So if you don't pay them, they're taking it back in a foreclosure.

Got it.

Same thing with these private lenders.

So they get recorded.

So when you pull a title search, when you sell the house, they say, hey, Tom, you owe Sean Kelly $100,000.

What's his payoff?

So it's $100,000 plus interest.

Got it.

Interesting.

So if I lose money, if I do that same scenario and I'm all in 120 and I owe you 130, I got to bring cash to close that deal.

Oh, so you still have to pay no matter what?

Oh, yeah.

Oh.

I mean, technically, no, but that would be, that's how you get a really bad name really fast.

So we've done probably 250 of those.

Wow.

Never not paid a lender back.

And I mean, I've paid probably close to a million plus dollars in interest to lending.

Dang.

It's on 250, you said?

Probably, yeah.

Holy crap.

Yes.

You've shaken a lot of hands.

Yeah.

Built a lot of good relationships.

Yeah, great relationships.

It's just like you got to do good business, and the social media helps it so much.

Yeah.

They know I'm not a a knucklehead.

They know I've been doing it for a long time and being a home inspector before this really helps.

Yeah, that probably gives you a huge edge, actually.

Massive.

Because you can go in a house and know what's wrong.

Nobody can tell me anything about it.

So if I walk it or my team does, I can look at pictures and be like, hey, this is what it is.

Yeah.

So you don't even need an appraisal.

No.

You could just do it yourself.

Yeah, just do it ourselves.

Wow, that's a good skill because I feel like most realtors don't know the actual values.

No, and then, I mean, at the time, I didn't think it was that cool because I was making 40 grand.

Like, it's kind of just earning your stripes, you know?

Yeah.

Learning an actual tangible skill that nobody can take from you.

That's super important.

Yeah, man, that's cool.

Well, what's next for you, dude?

I just got married four months ago.

Congrats.

Thanks, man.

I got a baby on the way.

Let's go.

Yeah.

I'm coming up, man.

All right.

Next year.

Sounds good.

So baby will be due in July.

God willing, obviously.

You want a boy or a girl?

I want a boy.

I mean, I think every guy says that, you know, but my mom always had told me my whole life that I was such a that I'm going to get a girl in the rest of my life, you know?

So

maybe a girl, maybe a boy, but either way, hopefully that's healthy, you know?

Yeah.

So she was supposed to come here today, but she got all sick and was in the bed.

She was all sad.

Dang.

Sorry to hear that, man, but that's cool.

I'm excited about that next chapter for me, too.

Yeah.

Yeah, I'm thinking around 30.

So yeah, okay.

You got a girlfriend or anything?

Fiancé.

Fiancé.

Yeah.

Nice, man.

Marriage is in two years.

They were booked next year.

You know how much these venues make, dude?

You probably had to deal with this.

Dude, I did the math.

We looked at two venues.

They both make $18 million a year.

Oh, my God.

Yeah, because they're fully booked in Jersey.

Okay.

Where did you, are you in ohio we actually did in cabo oh yeah yeah so we did in cabo it was actually much cheaper doing it at uh really all-inclusive highly recommended yeah mine was like 60 g's yeah i think it was like 40 to 50 for how many people inclusive 80.

wow it was dude it was amazing that sounds sick i just don't know if my everyone would fly to mexico yeah that's the that's the issue we had we had like one or two family members not make it yeah there's always that one or two family members that you're like

how did they come over now

no i feel that i'm struggling actually because i kind of don't want all my family there to be honest.

Did you deal with that too?

A little bit.

Yeah.

Talk to me about that.

I mean, just like toxic uncles and aunts.

Like, I mean, we'll see.

It's tough.

But, I mean, at the end of the day, like, everybody's going to pass away at some point, and you're going to be happy that you gave them that experience or whatever it is.

You know what?

You've changed my perspective.

I will invite them.

You're right, though.

You don't get much time with your friends.

No, you don't.

Especially like aunts, uncles, cousins.

You only see them like once a year.

Yeah.

And as time goes on, I mean, you said you haven't going to have kids by 30 or whatever it is.

I mean, it's going to get less and less, probably.

Yeah.

Well, dude, it's been fun.

Anything you want to close off with or promote?

No, man.

I mean, if you're looking to get into real estate, if you want to join a community that's

really fun and growing and want to learn how to wholesale flip and eventually learn how to own rental properties, join the real side of real estate.

You can find me on Instagram primarily, TommyHar05.

Just a down-to-earth dude from Ohio.

If you're in Ohio, would love to grab a beer, would love to chop it up.

We've got nothing to hide.

Love it.

You've changed my perspective on Ohioans.

Ohioans are cool, man.

And then, like, if you ever go to these mastermind events, we roll deep.

Everybody's just like, where do all you guys come from?

And they all crush it.

So, oh, I'm gonna check.

Actually, I've been to Cleveland, so I've been.

Does that count?

No.

Okay.

Yeah, I come to Columbus.

Yeah.

All right.

Check out Columbus.

All right.

Thanks for watching, guys.

As always, see you tomorrow.

Peace.